10-Q · April 30, 2026
Pro-Dex, Inc. reported strong revenue growth driven primarily by its medical device sales, with significant increases in revenue and earnings per share compared to the previous year. Despite some declines in repair…
Earnings analysis · 10-K
PDEX earnings analysis
Filed September 3, 2026 · Our reading of the company's report
The latest report
Pro-Dex delivered strong fiscal 2026 operating growth, with revenue up 16%, diluted EPS up to $4.12, and operating cash flow recovering to $7.242 million. The core orthopedic franchise benefited from a next-generation…
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Pro-Dex delivered strong fiscal 2026 operating growth, with revenue up 16%, diluted EPS up to $4.12, and operating cash flow recovering to $7.242 million. The core orthopedic franchise benefited from a next-generation handpiece launch and a customer contract extended through 2028, while APM adds vertical integration and aerospace/defense exposure. However, 78% customer concentration, a backlog decline from $50.4 million to $32.9 million, and the ongoing erosion of legacy repair revenue temper the outlook; reported earnings also benefited from $5.655 million of net gains on marketable equity investments.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $4.12
What stood out
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Strong Revenue and Earnings Growth
Fiscal 2026 net sales increased 16% to $77.548 million from $66.593 million, while gross profit rose to $24.335 million from $19.510 million and operating income increased to $12.991 million from $10.689 million. Diluted EPS increased to $4.12 from $2.67.
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Orthopedics Drives Medical Growth
Medical-device revenue rose 30% to $62.098 million and represented 80% of sales. Orthopedic revenue increased 46% to $48.804 million, driven largely by the largest customer’s next-generation handpiece launch.
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Contract Extends Through 2028
The largest customer amended its contract to extend through 2028 and provide higher volumes of its newest surgical handpiece. Management expects similar levels of orthopedic revenue through 2028, although customer distribution-network visibility remains limited.
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APM Adds Aerospace and Integration
Pro-Dex acquired APM on February 9, 2026 for total consideration of $8.650 million, including $6.650 million in cash and a $2.000 million seller note. APM broadens the customer base, supports vertical integration, and contributed $719,000 of fiscal 2026 revenue after acquisition.
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Liquidity Improved Materially
Cash provided by operating activities improved to $7.242 million from $1.682 million of cash used in fiscal 2025. Cash and cash equivalents increased to $8.192 million from $419,000, and the company had $11.0 million available under its revolving loan at June 30, 2026.
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Continued Share Repurchases
The company repurchased 79,898 shares for $3.4 million during fiscal 2026, reducing shares outstanding to 3,186,135 from 3,261,043. Since 2013, cumulative repurchases totaled 1,591,395 shares at an aggregate cost of $27.6 million.
What to watch
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Extreme Largest-Customer Concentration
Customer concentration increased in importance: Customer 1 generated $60.742 million, or 78% of fiscal 2026 sales, and represented $17.403 million, or 81%, of gross accounts receivable. A reduction, delay, or loss of this customer’s orders would be material.
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Backlog Declined 35%
Backlog fell to $32.9 million at June 30, 2026 from $50.4 million one year earlier. Management attributes the decline to timing, but also states that bookings can vary with new-product launches, end-user demand, and customer inventory levels.
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Repair Transition and Inventory Risk
Legacy repair revenue declined $6.0 million, or 33%, to $12.540 million as the largest customer transitions to its next-generation handpiece; management expects repairs of the legacy product may continue to decline and does not yet know the volume of billable next-generation repairs. Inventory and warranty charges also rose to $1.122 million from $264,000, primarily due to reserves for a complex part used in the new handpiece.
Management's outlook
The 10-K does not provide quantitative annual revenue or EPS guidance; outlook is discussed qualitatively. Management expects orthopedic sales at similar levels through 2028 under the amended largest-customer contract, while future APM contribution and next-generation repair volumes remain uncertain.
Earlier filings 4
10-Q · January 30, 2025
Pro‑Dex reported a strong quarter with net sales of $16,793,000 (up $4,205,000 or 33.4% vs. $12,588,000 a year ago) and diluted EPS of $0.61 (vs. $0.14 prior year). Gross margin expanded to 30.2% and operating income…
10-Q · October 31, 2024
Pro‑Dex reported Q1 net sales of $14,892,000 (up $2,954,000 or ~24.8% vs. $11,938,000 a year ago) with gross profit of $5,150,000 and operating income of $3,013,000. The company generated diluted EPS of $0.75 and…
10-K · September 5, 2024
Pro‑Dex reported fiscal 2024 revenue of $53.844 million, up from $46.087 million in fiscal 2023, driven primarily by medical device sales and increased repairs. The company finished build-out and moved assembly/repairs…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.